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Nanotechnology is a very promising technology that could potentially have a great impact in fields such as medicine, electronics, material science, and energy storage. Improvements in microscopy, as the invention of the Scanning Tunneling Microscope in 1981 and the Atomic Force Microscope in 1986, enabled the observation of molecules at nanoscale and helped obtain a better understanding of the extraordinary dominant effects at nanoscale, and later enabled the manipulation of single atoms or molecules. Furthermore, the discovery of carbon nanotubes brought a novel material with excellent properties at nanoscale. Fabrication of nanodevices is already a reality. However, in order for this technology to become cost-effective and available for society, scalable fabrication processes that would enable massive production of nanodevices must be developed. Towards this goal, the ‘Center for High Rate Nanomanufacturing ’ is developing a scalable nanomanufacturing process flow based on transferring nanoelements from a template to a substrate. For one of the step of this process flow, a alignment of template and substrate at nanoscale is required. This work aims at designing a capacitive displacement sensor for alignment of two chips or wafers. First, the alignment process is analyzed and different sensing techniques studied in relation to this specific project. After that, modeling and analysis of the sensor is carried out, followed by the design of the sensor, including its readout circuit